Food safety issues at its Vietnam unit have affected Universal Robina Corp.?s topline overseas.

URC’s international branded consumer foods business posted flat sales in the nine months of its fiscal year ending September 2016 at P24.65 billion.

In a stock exchange filing, the Gokongwei family’s food manufacturing arm said
regulatory issues in Vietnam dragged down results of the international branded business.

URC Vietnam was found guilty of violating food safety regulations after excessive lead content was discovered in a batch of C2 green tea and Rong Do energy drinks. It was fined P12 million by the Vietnamese Ministry of Health.

The incident sparked concerns among local consumers in Vietnam that the two products were unhealthy.

URC, however, is confident the problem will be resolved soon as it is working closely with Vietnam’s Ministry of Health to address the issue.

Meanwhile, URC’s other overseas businesses continued to perform well from October 2015 to June this year. In Indonesia, sales were up 24.9 percent driven by snacks and chocolates.

Thailand business increased by 1.7 percent as consumer confidence has started to recover in the country.

Malaysia rose 8.1 percent with double-digit growth in wafers and candies while Singapore was up 8.9 percent on the back of incremental sales from newly-acquired Griffin?s.

New Zealand sales have also started stabilizing through improved pricing and margins, coupled with new product offerings.